Deciding where to stay in Dali isn’t as simple as you might think. Instead of one distinct city centre, Dali is spread across wide areas from the charming streets below Cangshan Mountain to rural villages on the shores of massive Erhai Lake.
Atmospheres differ greatly between the east and west side of Erhai Lake. Booking one hotel can place you in the midst of Dali Ancient Town amongst restaurants and nightlife; booking another can send you an hour outside of town to a quiet lakeside village with nights spent watching majestic mountains disappear into the sunset.
Though Dali Ancient Town is the best area for most first-time visitors because of convenient access to restaurants, history and transportation, there are many reasons to venture outside of town. Remote lake-view accommodations can be found in Caicun, Longkan or Shuanglang. Xizhou is great for travelers interested in traditional Bai culture.
This Dali accommodation guide breaks down the best areas to stay in Dali, what each neighbourhood has to offer and which travelers will enjoy each area most.
- Where to Stay in Dali: Quick Guide
- Dali Ancient Town: Best First-Time Choice
- Longkan and Caicun: Best for Views of Erhai Lake
- Xizhou Ancient Town: Best for Traditional Bai Culture
- Shuanglang: Best for a Romantic Couples’ Getaway
- Xiaguan: Best Accommodation for Dali Railway Station
- Cangshan Foothills: Best Luxury Resorts and Hotels
- Where to Stay in Dali: Ancient Town or Beside Erhai Lake?
- How Many Nights Should You Stay in Dali?
- Tips for Booking Hotels Around Dali
- Frequently Asked Questions
- Final Thoughts
Where to Stay in Dali: Quick Guide
| Area | Best For | Atmosphere | Main Disadvantage |
|---|---|---|---|
| Dali Ancient Town | First-time visitors | Historic, lively and convenient | Can become crowded |
| Longkan and Caicun | Erhai Lake views and cycling | Peaceful and scenic | Fewer evening activities |
| Xizhou Ancient Town | Bai culture and slow travel | Traditional and rural | Farther from Dali Old Town |
| Shuanglang | Couples and luxury guesthouses | Romantic and lakeside | Long transfers |
| Xiaguan | Train connections and short stays | Modern and practical | Less historic character |
| Cangshan Foothills | Luxury resorts and families | Quiet and secluded | Usually requires taxis |
Dali Ancient Town: Best First-Time Choice
Located between Cangshan Mountain to the west and Erhai Lake to the east, Dali Ancient Town offers traditional architecture, quaint lanes and plenty to see and do.
You’ll find a mix of old city gates, courtyards, temples, museums, cafés and independent shops. The ancient town is also very convenient for visiting attractions like the Three Pagodas and taking the cable cars up Cangshan Mountain.
Weekdays are quiet with plenty of sidewalks for walking. During weekends and holidays, though, the main streets will be full of visitors browsing souvenir shops and sampling snacks.
Evenings are livelier too, as restaurants, courtyard bars and live-music venues remain open long after many shops and dining halls in Dali’s smaller villages have closed.
For convenience, book accommodation close to Erhai Lake and/or near the main attractions inside the ancient town itself. Addresses on Renmin Road and Foreigners’ Street will keep you in the centre of the nightlife.
Hotels just outside the northern, western or southern entrance gates usually offer quieter evenings, though.
Why Choose Dali Ancient Town?
Prices here are generally lower than in the nearby villages beside Erhai Lake. That lets you spend more on dining, sightseeing and activities.
Plus, the ancient town offers the widest range of food options and evening entertainment of any district in Dali.
If you only have two or three days in Dali, spending multiple nights outside the ancient town only lengthens your day trips back into town.
Hotels inside the old city walls are also the easiest places to find taxis, book private drivers and arrange day tours.
Recommended Hotels in Dali Ancient Town
Mercure Dali Ancient City
Mercure Dali Ancient City is consistent, comfortable and convenient for travellers who prefer international hotel brands over quirky local guesthouses.
Positioned between Cangshan Mountain and Erhai Lake, this hotel has 89 rooms, an on-site breakfast restaurant, fitness centre and self-service laundry equipment.
The Linden Centre Dali Old Town
The Linden Centre Dali Old Town is another property worth considering.
This hotel was converted from an old Bai residence, letting you stay in the heart of the ancient town while experiencing something unique.
Best for: First-time visitors to Dali, solo travellers, foodies and short visits of two or three nights.
Longkan and Caicun: Best for Views of Erhai Lake
If you dream of waking up beside Erhai Lake, consider staying in one of the smaller villages along its western shore.
Longkan, Caicun and several smaller communities offer great-value accommodation beside Erhai Lake.
Prices can be lower than hotels inside Dali Ancient Town. Many guesthouses face directly towards Erhai Lake, giving you your own room plus a view of the water and distant mountains beyond.
Tip: Because this side of the lake faces east, it’s particularly beautiful in the morning. You’ll watch the sunrise spread across Erhai Lake before more visitors arrive with bicycles and day tours.
Longkan
Longkan has been made famous by its waterfront photos. You’ll find small cafés, an accessible lakeside route and peaceful streets in the morning and evening.
Popular sections can get crowded with day trippers during peak visiting hours, though.
Longkan makes a good choice for couples, photographers and travellers who want scenic views without staying too far away from Dali Ancient Town.
Caicun
Rooms in Caicun also often face towards Erhai Lake, and the scenery is just as nice.
Caicun has more guesthouses, restaurants and transport options. Staying here can be one of the most practical ways to split your time between Erhai Lake and Dali Old Town.
The village isn’t quite as manicured or developed as a dedicated lakeside resort. You’ll find neighbourhoods, local shops and boutique hotels instead of just one enclosed tourist area.
Caicun Versus Longkan
Longkan is ideal for travellers drawn to its photogenic waterfront and peaceful atmosphere.
Caicun is generally the more practical choice if you want a wider selection of guesthouses, restaurants and transport options while remaining close to Dali Ancient Town.
Things to Consider for Erhai Lake Stays
One downside is that an “Erhai Lake view” does not always guarantee you’ll be right beside the lake.
Some guesthouses may have rooms overlooking rooftops, roads or houses before you reach a lake view. Be sure to examine recent guest photos before booking.
Make sure you know which rooms have direct lake views versus partial lake views or hotel rooftops with partial access to the lake.
Try to choose guesthouses where you can actually see Erhai Lake from your room balcony or window.
Ask about vehicle access too. Some boutique hotels are tucked away on narrow village lanes. You may need to walk with your luggage from the main road to these properties.
Best for: Couples, photographers, cyclists and travellers interested in quiet lakefront stays.
Xizhou Ancient Town: Best for Traditional Bai Culture
Dali doesn’t have to be about nightlife and restaurants. Travellers interested in traditional Bai culture should spend at least one night in Xizhou Ancient Town.
Xizhou is located north of Dali Ancient Town, between Cangshan Mountain and Erhai Lake.
It has earned a reputation for its traditional Bai-style houses, historic courtyard buildings and surrounding farmland.
Official tourism information from Yunnan puts Xizhou roughly 23 kilometres north of central Dali City. It also describes Xizhou Ancient Town as one of Dali’s most significant places to learn about Bai culture.
Why Choose Xizhou Ancient Town?
When daytime tourists leave in the afternoon, things become quieter. Instead, you’ll enjoy peaceful streets that better reflect local life outside the tourism districts elsewhere in Dali.
Booking a night in Xizhou also gives you extra time to explore the countryside in the morning.
You can visit local street vendors and historic homes without rushing through them on a half-day tour from Dali Ancient Town.
Staying overnight in Xizhou is ideal if you want less commercialised accommodation.
It’s great for travellers who enjoy traditional architecture, photography, local arts and crafts, or prefer slower travel itineraries.
Xizhou also makes a good home base for exploring the northwestern side of Erhai Lake. Nearby villages like Zhoucheng are easy day trips from Xizhou Ancient Town too.
Recommended Hotel in Xizhou Ancient Town
The Linden Centre Xizhou
For something more local, try staying at The Linden Centre Xizhou.
This boutique property was once a traditional Bai residence before being restored. It places more emphasis on cultural activities and letting guests explore local heritage rather than providing conventional brand-name amenities.
Things to Consider Before Staying in Xizhou
Few travellers visit Xizhou late at night.
Restaurants, cafés and night market stalls are mainly concentrated in Dali Ancient Town. You’ll find less variety in dining and activity options during the evenings.
Xizhou is much quieter than Dali Ancient Town after dinner time.
As a result, it’s better for travellers who plan to relax and enjoy slow travel rather than party all night long.
Best for: Cultural travellers, families with children, photographers and people who have been to Yunnan before.
Shuanglang: Best for a Romantic Couples’ Getaway
For your dream vacation photos beside Erhai Lake, consider staying in Shuanglang.
Most hotels on the eastern shore face towards Cangshan Mountain, with views of Erhai Lake out front.
Shuanglang has earned a reputation for being popular with couples. Traditional alleys, waterfront cafés and boutique hotels have made it one of Dali’s best resort-style escapes.
Tip: Yunnan’s official tourism resources also highlight Shuanglang for its local Bai culture and scenic beauty around Erhai Lake. It generally receives fewer day trippers than Dali Ancient Town.
Why Choose Shuanglang?
I wouldn’t say that staying in Shuanglang is convenient. In fact, most hotels here are expensive for that reason.
You come to Shuanglang for the atmosphere, scenic views and slower-paced lakefront vibes.
Wake up late and enjoy a leisurely breakfast with views of Erhai Lake. Spend the morning wandering through the old town alleys before stopping by a café for lunch.
Return to your hotel in time for sunset drinks on the terrace before calling it a night.
If slow-paced vibes and relaxing resort hotels sound better than busy sightseeing tours, Shuanglang might be perfect for you.
Why Shuanglang Beats Other Lakeside Villages
Shuanglang has more of a vacation atmosphere compared to villages on Erhai Lake’s western shore. It’s also less busy than Dali Ancient Town itself.
You’ll find plenty of design-focused hotels, waterfront restaurants and stylish cafés located within a relatively small area.
Sunset views here are incredible too.
As the sun sets in the west, you’ll watch its reflection stretch across Erhai Lake towards Cangshan Mountain.
Things to Consider Before Staying in Shuanglang
Before booking in Shuanglang, note that it’s far away from Dali Railway Station, Dali Ancient Town and attractions on Erhai Lake’s western side.
Spending multiple nights here will dramatically increase your driving time each day.
If your hotel itself isn’t part of the experience, Shuanglang isn’t great value.
You’re better off staying elsewhere if all you want to do is drive in, visit the sights around Dali Old Town and Cangshan, and then return to your hotel each night.
Keep luggage access in mind too.
Parts of Shuanglang’s old town only allow pedestrian traffic. Your hotel might not have vehicles that can drive directly up to its entrance.
Ask whether there’s a pickup service for guests from the closest vehicle-accessible point.
Best for: Couples, honeymooners, luxury travellers and relaxing lakefront vacations of two nights or less.
Xiaguan: Best Accommodation for Dali Railway Station
Xiaguan serves as Dali’s modern business district on the southern edge of Erhai Lake.
Prices tend to be lower here than accommodation inside Dali’s ancient towns and lakeside villages.
Xiaguan is also where Dali Railway Station is located. Booking a hotel here can make sense if you have an early morning train, arrive late at night or only plan to use Dali as a stopover between Kunming and Lijiang.
Xiaguan isn’t going to wow you with its charm in the same way as the lakeside villages and ancient towns.
For travellers seeking convenience, though, Xiaguan is hard to beat.
Why Choose Xiaguan?
It’s as simple as distance and transportation.
Xiaguan is the best place to stay in Dali if your accommodation needs include easy train access or arriving late at night.
Hotels near Dali Railway Station also tend to offer more amenities, including elevators, vehicle access, larger rooms and on-site facilities, than guesthouses located inside the ancient towns.
Recommended Hotels Near Dali Railway Station
Pullman Dali
Pullman Dali is located on Erhai South Road near Dali Railway Station.
If convenience is your top priority, this hotel won’t disappoint. Rooms are modern and comfortable, with everything you need for easy onward travel.
Hotel Indigo Dali Erhai
Hotel Indigo Dali Erhai takes lake viewing up a notch.
Its rooftop indoor pool offers panoramic views of Erhai Lake. Hotel Indigo is roughly 14 kilometres from Dali Airport too, making it a nicer alternative to standard station hotels.
Things to Consider Before Booking a Xiaguan Hotel
This district doesn’t capture the history or atmosphere that most visitors come to Dali for.
Xiaguan is convenient for dropping off your luggage or arriving late at night. Travelling back and forth between Xiaguan and Dali’s old towns takes time, especially during China’s peak travel seasons.
I generally recommend Xiaguan for your first or last night in Dali.
Unless your hotel is impressive enough to spend multiple days enjoying, saving time on day one or your final day can make the entire trip easier.
Best for: Travellers arriving by train, late-night arrivals, early-morning departures and business trips.
Cangshan Foothills: Best Luxury Resorts and Hotels
Budget is rarely the primary factor when booking a luxury resort.
If you’re willing to spend more money for privacy, resort amenities and larger rooms with better views, check out the foothills beneath Cangshan Mountain.
Hotels near the top of Cangshan Mountain are typically connected to downtown Dali by road. However, they don’t usually offer the same luxury hotel amenities or lake views.
The resorts and hotels in the foothills below have been built with visitors in mind.
Luxury Hotel Options Near Cangshan Mountain
Hotels in the Cangshan foothills are usually spaced farther apart from one another.
However, you’ll also find bigger rooms, landscaped gardens, swimming pools, children’s activities and views overlooking Erhai Lake.
Hilton Dali Resort & Spa
One of my favourite hotels in Dali is Hilton Dali Resort & Spa.
It overlooks Erhai Lake from partway up the Cangshan Mountains. This resort is roughly six kilometres from Dali Ancient Town.
It has an indoor pool, children’s club, spa and several dining options.
Couples and travellers who want to relax will appreciate the spacious rooms and well-designed resort grounds.
The Dali EDITION
For something newer and even more luxurious, check out The Dali EDITION.
Guests can enjoy four dining venues, an indoor pool, a spa and access to a complimentary children’s playroom.
Designed with Cangshan Mountain and Erhai Lake in mind, this is easily one of the nicest hotels you can stay at while visiting Dali.
Things to Consider When Booking Hotels Near Cangshan
It should go without saying that these luxury hotels aren’t within walking distance of attractions like Dali Ancient Town.
You’ll need a taxi or car to get around.
Before booking, double-check whether the hotel offers a shuttle service to and from the ancient town. Many upscale resorts do.
If not, look for properties that ride-hailing vehicles like DiDi can reach easily.
Is Staying Near Cangshan Worth It?
I prefer these resorts for families with children who want to spend part of each day relaxing at their hotel.
Couples looking for a romantic luxury escape will also appreciate staying here instead of inside Dali’s ancient towns.
Best for: Luxury travellers, families with children, resort vacations and special occasions.
Where to Stay in Dali: Ancient Town or Beside Erhai Lake?
If you have to choose just one place to stay in Dali, the ancient town beats lakeside accommodation for convenience.
Hotels inside Dali Ancient Town provide easy access to attractions, plenty of dining options and guesthouses that fit almost every budget.
Pick the Lakeside Villages When…
Choose one of the villages on Erhai Lake’s western shore when you want:
- Peaceful mornings
- Easy access to lakeside cycling routes
- Erhai Lake views
- Reasonable access to Dali Ancient Town
- A quieter atmosphere than the old town
Pick Shuanglang When…
Choose Shuanglang when you’re visiting Dali to:
- Relax beside Erhai Lake
- Enjoy scenic sunsets
- Stay in a romantic boutique hotel
- Prioritise atmosphere over sightseeing convenience
- Spend more time enjoying the hotel itself
Consider Splitting Your Stay Between Two Areas
Split your stay between two areas if possible.
Try spending two nights around Dali Ancient Town before moving to Shuanglang or Xizhou for another two nights.
That way, you can explore both the lakefront and ancient town locations without making long return trips every day.
How Many Nights Should You Stay in Dali?
Two nights are enough if you only have time for Dali Ancient Town, Cangshan Mountain and a partial tour of Erhai Lake.
Three or four nights provide a more comfortable itinerary.
This gives you enough time to spend one day in the ancient town, another day visiting Cangshan and a final day exploring Xizhou and the lakeside villages.
If you have five nights or more in Dali, try splitting your stay between two areas.
Spending extra nights beside Erhai Lake is especially helpful if you want to balance sightseeing with a relaxing lakeside stay.
Tips for Booking Hotels Around Dali
Double-Check the Hotel’s Location
Check the precise map location before booking a hotel.
Just because a property says it’s in “Dali” doesn’t mean you’ll be located inside the ancient town.
Hotels can be in Xiaguan, Shuanglang or remote villages on the opposite side of Erhai Lake.
Read Recent Guest Reviews
Pay attention to guest reviews mentioning noise, heating, air conditioning and vehicle access.
Traditional courtyard hotels look nice in photos, but sound can travel across empty halls and alleyways.
Confirm the Lake View
If you’re booking lakeside accommodation, look at recent guest photos instead of relying only on promotional images.
Confirm that your specific room category actually includes the advertised view.
Some hotels only provide lake views from selected rooms, balconies or shared rooftop areas.
Book Early for Chinese Public Holidays
Plan ahead if you intend to visit during major Chinese holidays.
Book early and try to choose hotels that offer refundable reservation rates. Popular hotels and scenic rooms can sell out quickly during China’s peak travel periods.
Frequently Asked Questions
Where’s the best area to stay in Dali for first-time visitors?
Dali Ancient Town is best for first time visitors. This area has restaurants, shops, historic attractions and access to transportation for day trips around Erhai Lake.
Where should I stay in Dali to have the best views of the lake?
Longkan and Caicun are nice areas on the western side of Erhai Lake. Shuanglang has some of the nicest views towards Cangshan Mountain and is a favorite area for couples.
Should you stay inside or outside Dali Ancient Town?
Staying within the old town will have you closer to restaurants and nightlife. Hotels/stays just outside of the city gates will usually have easier vehicle access and be quieter but still allow you to walk into town.
Is Shuanglang too far from Dali Ancient Town?
Shuanglang is not ideal if you want to visit Dali Ancient Town daily. Consider spending a night or two here if you want to stay at a hotel with good lake views, but plan on treating it like a separate destination.
Where should I stay near Dali Railway Station?
Stay in Xiaguan if you need the shortest access to Dali Railway Station. Pullman Dali and Hotel Indigo Dali Erhai are two nice full service hotels located in the new city.
Final Thoughts
For the majority of visitors asking themselves “Where to Stay in Dali? “, Dali Ancient Town is objectively the best starting point. It provides the highest concentration of sightseeing options, restaurants, atmosphere and convenient transportation.
Longkan or Caicun are both good choices if you’re after an Erhai Lake-view guesthouse without having to stray too far from Dali’s Old Town. Xizhou is currently the region’s best bet for culture and traditional building architecture, while Shuanglang is the prime choice for couples looking to get away for a relaxing lakeside getaway. Xiaguan caters more toward convenient amenities, while the
Cangshan foothills are best for luxury resorts and family-style activities.
No one area offers everything travelers could want. It all depends on if you plan on spending your vacation cycling next to Erhai Lake, exploring ancient alleyways, or just drinking in the mountain views from your hotel balcony.
Where to Stay in Dali: 6 Best Areas & Hotels